On Monday, TMTG shares experienced a significant decline of 21% after financial filings revealed substantial losses in 2023. Despite the recent financial troubles, TMTG had seen a rise in stock value of almost 200% since the beginning of the year due to the completion of a long-awaited merger that infused $300 million in cash into the company. However, these gains were short-lived as revenue for TMTG remained low and fourth-quarter revenue took a significant hit, dropping by 39% year-over-year to only $751,500.
TMTG’s primary product, Truth Social, has also seen a decline in monthly active users, dropping by 51% year-over-year to 494,000. In contrast, competitors like X (formerly Twitter) boast revenues of $665 million before its initial public offering and have 75 million monthly active users in the U.S., highlighting the challenges faced by TMTG in the social media landscape.
Looking ahead to the future, analysts are pointing towards 2024 as a crucial year for TMTG. The company is banking on the upcoming presidential election to boost its fortunes with Trump-backed super PACs having raised significant funds for digital advertising. Whether TMTG can turn its financial situation around and regain a solid footing in the market remains uncertain but hopeful investors are keeping their eyes on it.
In addition to these challenges, TMTG has also been facing legal issues related to its acquisition of Parler earlier this year. The company was forced to take down content from Parler that violated its terms of service and face lawsuits from both Parler and several states for failing to remove hate speech and other harmful content from its platform.
Overall, despite some successes such as their acquisition of Parler and subsequent growth in their stock value early this year, TMTG still faces significant challenges related to both financial performance and legal issues that could impact their ability to sustain their growth over time.
